RTX CORP (RTX)
US75513E1010 - Common Stock
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. RTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RTX (2.86%) is comparable to the rest of the industry.
RTX has a Return On Equity of 7.72%. This is in the better half of the industry: RTX outperforms 64.06% of its industry peers.
With a Return On Invested Capital value of 4.82%, RTX perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 7.70%.
The last Return On Invested Capital (4.82%) for RTX is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROIC | 4.82% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
1.3 Margins
RTX has a better Profit Margin (5.97%) than 62.50% of its industry peers.
RTX's Profit Margin has declined in the last couple of years.
RTX's Operating Margin of 7.85% is fine compared to the rest of the industry. RTX outperforms 62.50% of its industry peers.
RTX's Operating Margin has declined in the last couple of years.
RTX's Gross Margin of 19.21% is in line compared to the rest of the industry. RTX outperforms 40.63% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% |
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
RTX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RTX has more shares outstanding
Compared to 1 year ago, RTX has a worse debt to assets ratio.
2.2 Solvency
RTX has an Altman-Z score of 1.95. This is not the best score and indicates that RTX is in the grey zone with still only limited risk for bankruptcy at the moment.
RTX's Altman-Z score of 1.95 is on the low side compared to the rest of the industry. RTX is outperformed by 62.50% of its industry peers.
The Debt to FCF ratio of RTX is 5.79, which is a neutral value as it means it would take RTX, 5.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.79, RTX is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
RTX has a Debt/Equity ratio of 0.64. This is a neutral value indicating RTX is somewhat dependend on debt financing.
RTX has a worse Debt to Equity ratio (0.64) than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.51
WACC9.44%
2.3 Liquidity
RTX has a Current Ratio of 0.99. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RTX (0.99) is worse than 85.94% of its industry peers.
RTX has a Quick Ratio of 0.99. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, RTX is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.15%, which is quite good.
RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.90% yearly.
Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 17.82% in the last year.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%16%
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%6%
3.2 Future
Based on estimates for the next years, RTX will show a small growth in Earnings Per Share. The EPS will grow by 7.39% on average per year.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y11.49%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
EPS Next 5Y7.39%
Revenue Next Year7.53%
Revenue Next 2Y6.84%
Revenue Next 3Y6.54%
Revenue Next 5Y4.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RTX is valuated rather expensively with a Price/Earnings ratio of 21.22.
Compared to the rest of the industry, the Price/Earnings ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 78.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RTX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.89, the valuation of RTX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
RTX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
RTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RTX is cheaper than 67.19% of the companies in the same industry.
RTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RTX is cheaper than 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.28 | ||
| EV/EBITDA | 18.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y10.5%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, RTX has a reasonable but not impressive dividend return.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.46. RTX pays more dividend than 92.19% of the companies in the same industry.
RTX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of RTX decreases each year by -2.37%.
RTX has been paying a dividend for at least 10 years, so it has a reliable track record.
RTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.37%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
RTX pays out 67.44% of its income as dividend. This is not a sustainable payout ratio.
DP67.44%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
RTX CORP
NYSE:RTX (12/20/2024, 8:04:00 PM)
Premarket: 115.86 -0.62 (-0.53%)116.48
+1.02 (+0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.27%
Inst Owner Change-3.58%
Ins Owners0.07%
Ins Owner Change-2.07%
Market Cap155.04B
Analysts68.28
Price Target134.35 (15.34%)
Short Float %0.8%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Dividend Growth(5Y)-2.37%
DP67.44%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)7.07%
Max EPS beat(2)7.78%
EPS beat(4)4
Avg EPS beat(4)6.32%
Min EPS beat(4)2.68%
Max EPS beat(4)7.78%
EPS beat(8)8
Avg EPS beat(8)5.55%
EPS beat(12)12
Avg EPS beat(12)5.72%
EPS beat(16)16
Avg EPS beat(16)6.31%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.21%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)1.32%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)3.8%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)9.2%
PT rev (3m)14.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 18.89 | ||
| P/S | 1.96 | ||
| P/FCF | 21.28 | ||
| P/OCF | 15.04 | ||
| P/B | 2.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.14 |
EPS(TTM)5.49
EY4.71%
EPS(NY)6.17
Fwd EY5.29%
FCF(TTM)5.47
FCFY4.7%
OCF(TTM)7.75
OCFY6.65%
SpS59.38
BVpS45.92
TBVpS-20.14
PEG (NY)1.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROCE | 5.51% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 29.87% | ||
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% | ||
| FCFM | 9.22% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
ROICexc(3y)3.63%
ROICexc(5y)3.44%
ROICexgc(3y)18.07%
ROICexgc(5y)15.36%
ROCE(3y)3.92%
ROCE(5y)3.74%
ROICexcg growth 3Y26.39%
ROICexcg growth 5Y8.32%
ROICexc growth 3Y23.21%
ROICexc growth 5Y2.25%
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 70.56% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.29% | ||
| Profit Quality | 154.43% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.95 |
F-Score7
WACC9.44%
ROIC/WACC0.51
Cap/Depr(3y)64.56%
Cap/Depr(5y)64.59%
Cap/Sales(3y)4.11%
Cap/Sales(5y)4.14%
Profit Quality(3y)118.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%16%
EPS Next Y11.49%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
EPS Next 5Y7.39%
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%6%
Revenue Next Year7.53%
Revenue Next 2Y6.84%
Revenue Next 3Y6.54%
Revenue Next 5Y4.92%
EBIT growth 1Y92.97%
EBIT growth 3Y19.98%
EBIT growth 5Y4.36%
EBIT Next Year42.96%
EBIT Next 3Y19.56%
EBIT Next 5Y12.23%
FCF growth 1Y138.81%
FCF growth 3Y42.24%
FCF growth 5Y1.15%
OCF growth 1Y82.23%
OCF growth 3Y29.78%
OCF growth 5Y4.51%